LAKE WAKATIPU SERVICE

Otago Witness, Issue 4042, 1 September 1931, Page 7

LAKE WAKATIPU SERVICE

LOSS ON YEAR’S WORKING PURCHASE OF NEW STEAMER UNLIKELY. T Any further capital expenditure on the Lake Wakatipu service, such as would be involved in the purchase of a new steamer is not regarded with approval by the general manager of railways (Mr H. H Sterling), who reviews the past year’s operations in the course of his annual report. The service shows a reduced loss of £2029 for the year ended March 31, 1931, compared with the previous year. The figures relating to earnings and cost are as follow:—

In common with other services, says Mr Sterling, the economic depression has anected the traffic on lake steamers, but not to the full extent of the loss, as last year goods revenue was higher than usual due to heavy consignments of pipes being forwarded for irrigation works at Arrow town. During the year goods traffic showed a decrease of £1331 and passenger revenue a decline of £852. The decrease in expenditure was principally under the fol lowing headings:—Wages and expenses. £336; fuel, £208; stores, £232; repairs, steamers, £2259; repairs, wharves, £975. The steamer mileage decreased for 27 810 in 1930 to 2(5.124 in 1931. “In my previous two reports,” says Mr Sterling, “ I have dealt fully with the position regarding this service, and from the results obtained during the past year it is evident that any increase in capital by way of purchasing a new steamer to replace the Mountaineer and Ben Lomond would only result in increased loss. “The Royal Commission on Railways, which investigated this service, considered

that, provided the road from Kingston to Queenstown was not further proceeded with, the purchase of a new steamer would be justified. ~ “ Prior to the review by the Royal Commission, the department had reviewed this service and submitted proposals for an adjustment of rates with a view to reducing the loss. Discussions took place with representatives of local interests ami the matter became complicated by the question of the completion of the road be tween Kingston and Queenstown which was commenced, as I understand, as an unemployed relief work. Eventually the matter of the Queenstown Borough Council taking over the services came into the discussion, -but up to the present finalitv has not been readied. “ There is no doubt that the business offering cannot support two systems of transport—indeed it can scarcely support one on an economic basis—and, as reports indicate that local interests intend to agitate strenuously for the completion of the road, it can certainly not be expected that further capital expenditure should be incurred on the lake steamer service.

Revenue .. ., Expenditure ., 1931. £ . 9,166 . 14,064 1930. £ 11,447 18,374 Net loss .. . £4,898 £6,927